In the ever-transforming world of state and local government, the 2026 CIO survey, released by NASCIO on September 28, reveals multiple challenges as state CIOs face the coming year.

In the first paragraph of the first page, growing demands on this profession are laid out clearly. These include “workforce pressures, funding constraints, rapidly evolving technologies and rising expectations for secure, accessible and modern government services.”

Added to these pressures are the growing demands to increase digital access, navigate the use of agentic AI, deal with data center controversy and protect states and localities from ever present cybersecurity worries.

With 36 gubernatorial elections coming in November, states face an additional challenge with at least half of the elections resulting in new governors starting in January 2027. This will result in an expected shift in individuals who take over the Chief Information Officer position.

This year’s CIO survey, titled “The State CIO in Motion: Priorities, Pressures and Progress,” brought responses from 51 state and territory CIOs and was conducted in summer 2026. One of its key themes is the increasing role that this top technology leadership position plays as an “enterprise business leader, not only a technology operator.”

Noting that technology “is a part of almost every part of government these days,” the survey carries the strong message that new CIOs “must sit at the leadership table.”

The survey narrative notes that this responsibility includes balancing demands for long-term modernization with immediate demands. What’s more, this takes place in an “uncertain environment with the devolution of federal program administration, cost shifts and instability.” At the same time, technological decision-making, including technological surveillance and the approval of new data centers, are becoming “more political and public facing.”

The survey also provides CIO responses on critical issues that have resulted in previous 2026 NASCIO reports about digital accessibility and  a September 9 joint release with General Dynamics Information Technology about the need for increased attention to cybersecurity threats to critical infrastructure such as water systems, communication networks and hospitals. 

According to the 2026 survey response, CIOs regard the threat to critical infrastructure (CI) very seriously.

Challenges for CIOs also include the transition facing all of state government due to an ever-changing workforce, shifting job expectations and tightening budgets. 

For IT, archaic funding mechanisms as well as aging legacy systems add to the issue in achieving continued progress in digital transformation. While 55% of CIOs say they have dedicated funding to advance digital services for citizens, 45% say they do not. The survey provides a list of some of the reasons that funding is an issue:

• “Long-term state budget uncertainty

• “Funding for digital transformation being fragmented across many agencies

• “Technological emergencies that require immediate resources

• “Being able to pay for improvements only from one-time funding sources.

• “Demand growing faster than offerings can reasonably be expanded

• “Management of and complexities with vendor relationships.”

This is the 17^th edition of the survey. In each year, one of the most fascinating aspects is the change that occurs from one year to the next. In 2026, the greater use of Generative AI is evident, with 98% of respondents saying their governments had “implemented (AI) enterprise policies and procedures, compared with 76% in the 2025 survey. New “procurement terms and contract provisions” for GenAI, “have been put in place” for 61% of states compared with 41% last year.  A similar change has come with 61% of governments saying they have addressed transparency and accountability, compared with 41% in 2025.

This was the first year the CIO survey asked about agentic AI with 21% responding that they were using it; 35% saying it was planned;  29% responding in the negative and 4% saying they were unsure.

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